Internet-based retail sales have become a mainstay in the continued growth of electronic commerce, according to the U.S. Department of Commerce Census Bureau (E. Rabinovich, Journal of Business Logistics 26:1, 2005). Electronic commerce via the internet is rapidly changing the way in which products are purchased by and delivered to consumers. An important challenge faced by most businesses engaging in commerce over the Internet (or by telephone or mail order) relates to the manner in which their products actually get to consumers.
Most internet retailers rely on third-party services such as UPS and Federal Express to deliver the products purchased on their web sites. This model has some advantages for the retailers, because they can utilize professional delivery companies rather than investing in and developing their own delivery infrastructures.
However, as is well-known, the delivery cost to the consumer can be quite high. High delivery costs can cause would-be buyers to cancel orders or otherwise purchase less from a retailer, which obviously hurts the retailer economically (provided the particular has a profitable business on each marginal order).
Many consumers greatly value the opportunity cost of their time and prefer the convenience of online shopping, saving a trip to a physical store. Some consumers, on the other hand, do prefer to shop at a “real” store, for example, to be able to see products before purchasing, or because they enjoy the shopping experience. Some consumers, furthermore, would welcome opportunities for extra income on a regular basis by delivering orders from the store in which they are shopping, or nearby stores, to online shoppers who live in close proximity.
From an environmental standpoint, current delivery methods for retail orders can have a high cost. Fuel is wasted when product delivery routes are longer or less efficient than they need to be. Low product-delivery efficiencies can be caused, for example, when goods are transported across the country from a warehouse to a consumer, rather than from a local store that stocks the item.
It is widely recognized that energy is one of the most critical challenges facing humans in the 21 st century. One area of particular importance is reducing the high consumption of liquid fuels, such as gasoline and diesel fuel, derived from petroleum. A significant percentage of transportation fuel usage—and associated emissions—is due to inefficiencies during delivery of retail goods.
Based on these known limitations, consumers and retailers would benefit from a delivery method, service, and apparatus that can provide delivery of goods at a lower cost, compared to what is commercially available today. There also exists a desire in the marketplace for improved delivery methods that can reduce overall fuel usage and road congestion, and thereby benefit the environment and quality of life.
What is therefore needed is a method and apparatus to match the supply and demand of the delivery system in an efficient manner. Namely, persons seeking extra income need to be matched with persons preferring the convenience of online shopping. In a preferred system, the reduction in fuel usage could translate into value creation for all members of the value chain: reduction in delivery fees for buyers, higher customer satisfaction and purchasing of goods for retailers, and the ability to earn extra income for delivers.